Price alone doesn’t always classify a stock as cheap but when solid growth is expected and valuation fundamentals indicate the equity is undervalued it’s usually time to buy.
Considering this scenario, here is a look at three top-rated Zacks stocks that are starting to come off as cheap.
Harmony Gold (HMY)
Harmony Gold is starting to stand out with the gold mining company sporting a Zacks Rank #2 (Buy). Based in South Africa, Harmony Gold conducts underground and surface gold mining along with exploration, processing, smelting, and refining.
With Harmony stock trading at $4, earnings are forecasted to jump 15% this year and skyrocket another 142% in FY24 at $0.92 per share. The anticipated growth helps confirm Harmony stock is undervalued at 12X forward earnings which is well below its industry average of 21.5X and the S&P 500’s 20.6X.
LSI Industries (LYTS)
Another stock that is starting to make the case for being cheap and undervalued is LSI Industries which also lands a Zacks Rank #2 (Buy).
LSI Industries is an image solutions company that combines integrated design, manufacturing, and technology to supply its own quality lighting fixtures and graphics elements for applications in the retail, specialty niche, and commercial markets.
Trading at $11 a share, LSI Industries’ earnings are forecasted to jump 20% this year at $0.77 per share compared to EPS of $0.64 in 2022. Plus, fiscal 2024 earnings are forecasted to climb another 20% to $0.94 per share.
Notably, earnings estimates are nicely up over the last 60 days for both FY23 and FY24 with LSI Industries stock trading reasonably at 15.5X forward earnings. This is near the industry average of 13.9X and nicely below the benchmark. Furthermore, LSI Industries price to sales valuation is very attractive with its P/S ratio of 0.69X beneath the industry average of 1X and the S&P 500’s 3.7X average.
Marks and Spencer Group (MAKSY)
Lastly, higher earnings estimate revisions are making Marks and Spencer Group’s stock look attractive at $4 a share and coveting a Zacks Rank #2 (Buy).
Marks & Spencer is one of the U.K.’s leading retailers, offering premium clothing, home products, and higher-quality food. For its current fiscal 2024 earnings are now projected to dip -5% but rebound and soar 21% in FY25 at $0.48 per share.
Earnings estimates have gone up over the last 60 days with Marks & Spencer stock trading at 12.6X forward earnings which is slightly beneath the industry average of 12.9X and the benchmark.
Bottom Line
Noticeable growth and rising earnings estimates are making these top-rated stocks stand out as cheap. This is supportive of their attractive valuations and is starting to make them look undervalued at their current levels.
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Price alone doesn’t always classify a stock as cheap but when solid growth is expected and valuation fundamentals indicate the equity is undervalued it’s usually time to buy.
Considering this scenario, here is a look at three top-rated Zacks stocks that are starting to come off as cheap.
Harmony Gold (HMY)
Harmony Gold is starting to stand out with the gold mining company sporting a Zacks Rank #2 (Buy). Based in South Africa, Harmony Gold conducts underground and surface gold mining along with exploration, processing, smelting, and refining.
With Harmony stock trading at $4, earnings are forecasted to jump 15% this year and skyrocket another 142% in FY24 at $0.92 per share. The anticipated growth helps confirm Harmony stock is undervalued at 12X forward earnings which is well below its industry average of 21.5X and the S&P 500’s 20.6X.
LSI Industries (LYTS)
Another stock that is starting to make the case for being cheap and undervalued is LSI Industries which also lands a Zacks Rank #2 (Buy).
LSI Industries is an image solutions company that combines integrated design, manufacturing, and technology to supply its own quality lighting fixtures and graphics elements for applications in the retail, specialty niche, and commercial markets.
Trading at $11 a share, LSI Industries’ earnings are forecasted to jump 20% this year at $0.77 per share compared to EPS of $0.64 in 2022. Plus, fiscal 2024 earnings are forecasted to climb another 20% to $0.94 per share.
Notably, earnings estimates are nicely up over the last 60 days for both FY23 and FY24 with LSI Industries stock trading reasonably at 15.5X forward earnings. This is near the industry average of 13.9X and nicely below the benchmark. Furthermore, LSI Industries price to sales valuation is very attractive with its P/S ratio of 0.69X beneath the industry average of 1X and the S&P 500’s 3.7X average.
Marks and Spencer Group (MAKSY)
Lastly, higher earnings estimate revisions are making Marks and Spencer Group’s stock look attractive at $4 a share and coveting a Zacks Rank #2 (Buy).
Marks & Spencer is one of the U.K.’s leading retailers, offering premium clothing, home products, and higher-quality food. For its current fiscal 2024 earnings are now projected to dip -5% but rebound and soar 21% in FY25 at $0.48 per share.
Earnings estimates have gone up over the last 60 days with Marks & Spencer stock trading at 12.6X forward earnings which is slightly beneath the industry average of 12.9X and the benchmark.
Bottom Line
Noticeable growth and rising earnings estimates are making these top-rated stocks stand out as cheap. This is supportive of their attractive valuations and is starting to make them look undervalued at their current levels.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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